Baltimore, MD – Alex. Brown Realty (ABR) and Capstone announce the acquisition of the Marriott Residence Inn Cape Canaveral, a 150-room, select service, extended-stay hotel in Cape Canaveral, Florida. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $9.2 million in the venture.
The Residence Inn Cape Canaveral is located within minutes of Cape Canaveral Air Force Station, Port Canaveral, the Kennedy Space Center and Cocoa Beach – all strong demand generators for the hotel. Built in 2006, the hotel offers spacious suites with full kitchen and separate sleeping and living areas and amenities including a pool, fitness center, outdoor bar and fire pit, meeting space, business center, and complimentary Wi-Fi. Following a $2.1 million renovation in 2012, the hotel was recognized by Marriott as the 2013 Residence Inn of the Year.
Capstone gained control of the asset through an off-market transaction at an attractive cap rate and arranged fixed-rate debt financing at a very low interest rate. “We were pleased that Capstone brought this transaction to us,” commented Tom Burton, ABR’s chief investment officer. “The strength of the market, combined with the hotel’s strong existing market penetration rate and quality of the Residence Inn brand should translate into favorable returns for our investors,” said Burton.
Crescent Hotels & Resorts, a northern-Virginia based management company, will provide property management services. The Residence Inn Cape Canaveral is the first joint venture between ABR and Capstone.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Capstone Development is a Washington, D.C.-based hospitality investment firm founded in 2008. Capstone acquires, develops and asset manages high-quality lodging assets and lodging-anchored mixed-use projects in the continental United States. www.capstonedevco.com